Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by $15$ percent a year for the next $4$ years and then decreasing the growth rate to $3\mathrm{.}5$ percent per year. The company just paid its annual dividend in the amount of $$0\mathrm{.}20$ per share. What is the current value of one share of this stock if the required rate of return is $16$ percent?

Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by $15$ percent a year for the next $4$ years and then decreasing the growth rate to $3\mathrm{.}5$ percent per year. The company just paid its annual dividend in the amount of $$0\mathrm{.}20$ per share. What is the current value of one share of this stock if the required rate of return is $16$ percent?

$$2\mathrm{.}2$

$$2\mathrm{.}71$

$$2\mathrm{.}38$

$3\mathrm{.}05$

$$2\mathrm{.}49$